rapid metro gurgaon june 2016mohua.gov.in/upload/uploadfiles/files/privateinitiative_md.pdf ·...
TRANSCRIPT
Rapid Metro Gurgaon
June 2016
Rapid Metro Gurgaon
• Developed as a “last mile connectivity” solution from Delhi Metro’s
Gurgaon line at Sikanderpur interchange station to NH-8 thru’ Cyber City
• Phase I - 5.1 km thru’ SPV (RMGL)
• India’s first fully privately funded metro facility in PPP format
• Construction & commissioning in 36 months
• Operations commenced since 14th Nov’13
• Phase II – 6.6 km thru’ SPV (RMGSL)
• Currently under construction
• Targeted to be in service by end 2016
• Promoters:
• IL&FS Transport Networks Limited
• IL&FS Rail Limited
Rapid Metro – Key Project Parameters
Phase I: In Service
• Route Length : 5.1 Km
• Project Cost : 1229 Cr
• Concession Agreement : Dec’09
• Financial Closure : Jun’10
• Start of Construction : Nov’10
• GoI Approval : Dec’11
• Commercial Operation : Nov’13
Phase II: Under Construction
• Route Length : 6.6 Km
• Project Cost : 2143 Cr
• Concession Agreement : Jan’13
• Financial Closure : Jul’13
• Start of Construction : Sep’13
• GoI Approval : Nov’14
• Commercial Operation : 2016 (planned)
Rapid Metro Phase I
3-July-2015
In Service Since Nov ‘13
Rapid Metro Phase I + Phase II
3-July-2015
Phase I – Nov’13 : In Service Phase II – 2016 : Planned
NH-8 from
Delhi
Salient Features – Snapshot
Project
Elevated Network
Delhi Metro Smart Cards and Tokens
applicable
Launch: 14th November 2013
Fare: Flat @Rs 20/-
Network
Interchange station: Sikanderpur
Length: 5.1 km
Number of Stn: 6
Timing: 0605 - 0036 hrs (midnight)
Train
Number of Trains: 5
3 Coaches per Train
Average speed: 30 km/hr
Train frequency: 4-5 minutes
Branded Train
Rapid Metro Phase I - Snapshot
Vodafone Belvedere Towers Station IndusInd Bank Cyber City Station
Sikanderpur Station (Terminal)
Rapid Metro Phase I - Snapshot
Seamless Interchange with DMRC
India’s First Elevated Depot 750V DC 3rd Rail, SG Track
Operation Control Centre
Rapid Metro – Salient Features - Many Firsts in India
• Fully privately funded metro rail project
• Metro rail system providing last mile connectivity
• Elevated Depot
• Common ticketing with another metro railway operator (DMRC)
• Pioneered Innovation with Station branding and naming rights in India
• Train wraps for advertising
• Turnkey supply contract for Key Railway systems
• Turnkey maintenance contract for Key Railway systems
• Punctuality: 99.85% since inception
• Reliability measured as Mean Distance Between Failures (MDBF): >7.5 Lakh Kms
• Regeneration Efficiency (avg.): 29.7% since inception
• Availability levels: 99.94 % since inception
• Common ticketing with another metro railway operator (DMRC)
• Elevated Depots for maintenance and stabling
• Pioneered innovation with Station branding and naming rights in India
• Train wraps for advertising
Rapid Metro – Achievements
• Metro Rail projects – PPP framework
• Viability improvement measures based on Rapid Metro experience
Rapid Metro – challenges encountered
• Commercial development in the Cyber City area has been <45%: directly
impacts ridership potential
• Lack of integration with urban mobility plan – no feeder/evacuation
service from the mass transit nodes, car parks etc.
• Absence of appropriate regulatory/ policy framework – anomaly of hugely
capital intensive metro (at commercial rates of interest) & “regulated”
framework on fares, competing with alternate forms of transport on an
unregulated, asset light “aggregator” model.
Metro Rail Projects – PPP Model
• Connectivity solutions are central to urban mobility - Mass transit
solutions like metro rail have significant positive impact on the city and the
society at large
• Development of Metro rail projects are hugely capital intensive although
viability of such projects is always a challenge
• Private sector brings in efficiency & leveraging potential in addition to
enterprise, innovation, technology etc.
• Need for an enabling framework by GoI/State Govt.
• Government to extend support with an enabling framework
supplemented with appropriate grants, concessions, opportunities,
land rights, rebates and risk cover etc.
• Authority to monetise benefits and channelise back into such projects.
Enabling framework for making PPP a sustainable proposition - alternate measures
• Metros will favourably impact real estate values around their alignment -any strategy to render viability needs to capture such externalities
• On a concept of user/ beneficiary to pay,
• Adopt a “corridor” approach to monetise such values
• Consider higher FAR for all properties within a prescribed distancefrom the metro alignment: levy a cess on the additional FAR granted
• Enhancement of property tax in the influence zone
• Consider other measures viz. Cess on fuel, parking taxes, congestioncharges, auction based motor vehicle registration quota system etc.
• All revenues collected into a “Dedicated Urban transport fund”
“Dedicated Urban Transport fund” created to meet the difference between the
public fare paid by commuters and the technical fare (required by the private
operator) to sustain the operations.
Enabling framework for making PPP a sustainable proposition – building blocks
• Developing a sustainable proposition
• “Fare box” revenue cannot sustain such projects
• Recognise that cost of funds to a concessionaire without sovereign guarantee are at commercial rates of interest
• Building in alternate revenue opportunities are a necessity
• Risk sharing between Project Sponsor (Authority) and Project developer (Concessionaire) needs to be equitable
• Practice is to shift entire ridership risk to the Concessionaire
• Risk mitigation to be adequately built into the concession framework
• Integration with Urban Mobility Plan for the city (Corporation’s remit)
• multi-modal integration for feeder/evacuation, car parks etc
• Structural issues related with commercial borrowing for infra projects in India – lack of alignment in moratorium/ tenor/rates vs. back ended revenues (gestation period for traffic ramp up)
• Viability gap funding is a must.
• Enhancing non- fare box revenues is a necessity.
• Alternate measures for augmenting non- fare box revenues:
• Property development rights packaged into the concession oraccorded as per TOD policy
• Operationalisation of TOD policy:
• Creation of Infrastructure Development Fund (IDF) corpus
• Evolve mechanism for IDF disbursement to private sector projects– infusion as equity/ grants that stay with the project till eventualtransfer to Authority
• While some cross subsidisation is inevitable, IDF benefits need tobe administered corridor-wise for the metro network, to the extentpossible
• Unconditional advertisement rights, without encumbrances orlevies by local bodies
PPP Metro projects – suggestions for future
• Integration with urban mobility plan, city bus service, car parking etc. – wellbeyond the remit of the private enterprise
• Enable access to lower cost of funding/ multi-lateral agencies - State Govt./Authority may need to facilitate
• Minimise/ eliminate taxes, levies & custom duties to reduce loading intoinitial investment
• Principles of equity in risk allocation
• Risk mitigation measures to be built into the concession framework tillspecified benchmarks are achieved.
• IDF support to bridge the anomaly between back ended revenues dueto traffic ramp-up considerations vs. front ended repayments
• Appropriate mechanism for renegotiation in line withrecommendations of Kelkar Committee
PPP Metro projects – suggestions for future
Thanks